In a Capital Budgeting Problem, If Either Project 1 or Project

question 49

Multiple Choice

In a capital budgeting problem, if either project 1 or project 2 is selected, then project 5 cannot be selected. Which of the alternatives listed below correctly models this situation?

• A) x1 + x2 + x5 ≤ 1
• B) x1 + x2 + x5 ≥1
• C) x1 + x5 ≤ 1, x2 + x5 ≤ 1
• D) x1 - x5 ≤ 1, x2 - x5 ≤ 1

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Definitions:

Partner Withdrawal

The process or act of a partner exiting from a partnership, impacting the partnership's operation and financial status.

Partnership

A legitimate business arrangement where two or more participants collaborate in running the enterprise and splitting the income.

Fiduciary Duties

Obligations that require a party, typically in a trustee or representative role, to act in the best interests of another party.

Undertake Business

The act of engaging in commercial or professional activities, usually with the objective of generating profit.